DoD's $12.5M contract for systems engineering services awarded to Lear Siegler Services, Inc. shows fair value
Contract Overview
Contract Amount: $12,553,898 ($12.6M)
Contractor: URS Federal Services Inc.
Awarding Agency: Department of Defense
Start Date: 2006-04-11
End Date: 2008-12-30
Contract Duration: 994 days
Daily Burn Rate: $12.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200607!003681!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB010 !A!N! !Y!0130 ! !20060411!20110129!834530086!065262573!043271568!N!LEAR SIEGLER SERVICES, INC !595 SHREWSBURY AVENUE !SHREWSBURY !NJ!07702!37810!029!34!LAKEHURST NAS !OCEAN !NEW JERSEY!+000005114878!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!Y!2!014!B! !C!N!Z! ! !N!C!N! ! ! !C!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: SHREWSBURY, MONMOUTH County, NEW JERSEY, 07702, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $12.6 million to URS FEDERAL SERVICES INC. for work described as: 200607!003681!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB010 !A!N! !Y!0130 ! !20060411!20110129!834530086!065262573!043271568!N!LEAR SIEGLER SERVICES, INC !595 SHREWSBURY AVENUE !SHREWSBURY !NJ!07702!37810!029!34!LAKEHURST NAS !OCEA… Key points: 1. The contract's value of $12.5M for systems engineering services appears reasonable when benchmarked against similar contracts. 2. Competition for this contract was full and open, suggesting a competitive bidding process that likely influenced pricing. 3. The contract's duration of 994 days (approx. 2.7 years) indicates a medium-term engagement for the services provided. 4. The primary service category is 'Systems Engineering Services', aligning with the contractor's expertise. 5. The contract falls under the 'Research and Development' sector, specifically R&D in Physical, Engineering, and Life Sciences. 6. The award was made to a large business, with no specific small business set-aside noted.
Value Assessment
Rating: fair
The contract value of $12.5M for systems engineering services appears to be within a reasonable range when compared to similar government contracts for specialized engineering support. While specific per-unit cost data is not readily available, the overall price for the scope of work, which includes research and development in physical, engineering, and life sciences, seems to reflect fair market value given the complexity and duration. The contract type (Time and Materials) can sometimes lead to cost overruns if not managed carefully, but the total obligation suggests a controlled expenditure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates 14 bids were received, suggesting a robust level of competition. This broad participation is generally favorable for price discovery and ensures the government can select from a wide range of qualified contractors, potentially leading to better value.
Taxpayer Impact: A full and open competition with multiple bidders typically results in more competitive pricing, which is beneficial for taxpayers by ensuring government funds are used efficiently.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Department of the Army, which receives critical systems engineering support. The services delivered are essential for the development and integration of complex electronic and communication equipment. The geographic impact is primarily within the United States, supporting defense operations and technological advancement. The contract supports a specialized workforce in systems engineering and related technical fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost escalation under Time and Materials contract type if not closely monitored.
- The specific nature of 'Systems Engineering Services' can be broad, requiring clear performance metrics to ensure accountability.
- Reliance on a single large contractor for critical systems engineering functions could pose a long-term risk if not diversified.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Contractor (Lear Siegler Services, Inc.) has a track record of performing government contracts.
- The contract aligns with the Department of Defense's strategic needs for advanced electronics and communication systems.
Sector Analysis
This contract falls within the broader 'Information Technology' and 'Defense Industrial Base' sectors, specifically focusing on 'Electronics and Communication Equipment' and 'Systems Engineering Services'. The market for such services is highly specialized, driven by government procurement needs for advanced technological solutions. Comparable spending benchmarks would typically involve other large-scale defense contracts for R&D and engineering support, where competition and technical expertise are key determinants of value.
Small Business Impact
The contract was awarded to URS Federal Services Inc. (as the prime contractor, though Lear Siegler Services, Inc. is listed as the performer) and does not indicate any specific small business set-aside. This suggests that the primary award went to a large business. There is no explicit information on subcontracting plans for small businesses within this data, but large defense contracts often include subcontracting goals to engage the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. Performance monitoring, invoicing review, and compliance checks are standard accountability measures. Transparency is facilitated through contract databases like FPDS-NG. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Contracts
- Systems Engineering Services Contracts
- Electronics and Communication Equipment Procurement
- Department of the Army IT and Engineering Support
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Lack of specific details on task performance and deliverables.
- Contract awarded to a large business, with no explicit small business subcontracting requirements detailed.
Tags
department-of-defense, department-of-the-army, systems-engineering-services, research-and-development, electronics-and-communication-equipment, full-and-open-competition, time-and-materials, large-business, new-jersey, defense-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.6 million to URS FEDERAL SERVICES INC.. 200607!003681!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB010 !A!N! !Y!0130 ! !20060411!20110129!834530086!065262573!043271568!N!LEAR SIEGLER SERVICES, INC !595 SHREWSBURY AVENUE !SHREWSBURY !NJ!07702!37810!029!34!LAKEHURST NAS !OCEAN !NEW JERSEY!+000005114878!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A! !999
Who is the contractor on this award?
The obligated recipient is URS FEDERAL SERVICES INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $12.6 million.
What is the period of performance?
Start: 2006-04-11. End: 2008-12-30.
What is the historical spending trend for Lear Siegler Services, Inc. with the Department of Defense?
Analyzing the historical spending for Lear Siegler Services, Inc. with the Department of Defense requires accessing comprehensive contract databases over multiple fiscal years. While this specific data point is for a single contract, a broader analysis would involve summing all contract awards to Lear Siegler Services, Inc. by the DoD. This would reveal patterns in contract types, awarded amounts, and the agencies within the DoD they most frequently serve. For instance, if Lear Siegler Services, Inc. consistently receives large R&D or engineering services contracts, it indicates a strong, established relationship and specialized capability. Conversely, a fluctuating pattern might suggest a more opportunistic engagement or a shift in their service offerings. Understanding this history provides context for the current contract's significance and the contractor's overall role within the defense industrial base.
How does the awarded amount compare to the initial estimated value or ceiling of the contract?
The provided data indicates an 'awarded amount' (a) of $12,553,898.06. However, it does not explicitly state the initial estimated value or the contract ceiling. For Time and Materials (T&M) contracts, the awarded amount often represents the total obligated funds or the value of task orders issued against a contract ceiling. Without the ceiling value, it's difficult to definitively assess if the contract was fully utilized or if there was significant room for growth. If the awarded amount is close to a pre-defined ceiling, it suggests the contractor performed the expected scope of work. If the awarded amount is substantially less than a potential ceiling, it might indicate that the full scope was not needed or that the government managed the contract tightly to control costs. Further investigation into the contract's ceiling and any modifications would be necessary for a complete assessment.
What specific systems engineering tasks were performed under this contract?
The contract description lists the Product Service Code (PSC) as 'R414' for 'Systems Engineering Services' and the North American Industry Classification System (NAICS) code as '541710' for 'Research and Development in the Physical, Engineering, and Life Sciences'. While these codes provide a high-level categorization, they do not detail the specific tasks. Typically, systems engineering services involve activities such as requirements analysis, system design, integration, testing, verification, validation, and lifecycle support for complex systems. Given the context of 'USA COMMUNICATIONS-ELECTRONICS', it is highly probable that the services related to the design, development, integration, and testing of communication and electronic systems for military applications. Specific task details would usually be found in the Statement of Work (SOW) or task orders associated with the contract.
What is the significance of the 'Department of the Army' as the specific agency within the DoD?
The Department of the Army is one of the three military departments within the United States Department of Defense. Awarding this contract to Lear Siegler Services, Inc. signifies that the Army had a specific need for systems engineering services related to communications and electronics equipment. This could pertain to upgrading existing systems, developing new technologies for ground forces, or supporting command and control infrastructure. The Army's focus on these areas often involves integrating complex electronic systems for battlefield awareness, communication networks, and soldier-worn technology. Therefore, this contract directly supports the Army's modernization efforts and operational readiness in the domain of electronic warfare and communication.
How does the contract duration (994 days) impact the assessment of value for money?
A contract duration of 994 days, approximately 2.7 years, suggests a medium-term engagement for the systems engineering services. For value-for-money assessment, a longer duration can be beneficial if it allows for stable performance, continuity of expertise, and the successful completion of complex, multi-phase projects. It can reduce the costs associated with frequent contract transitions and onboarding of new personnel. However, it also increases the risk of scope creep or the need for adaptation to evolving technological requirements. The $12.5M awarded amount spread over this period ($4.6M per year) appears reasonable for specialized engineering services, implying that the annual cost is not excessively high. The key is whether the services delivered over this period met or exceeded expectations and contributed significantly to the Army's objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 14
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM (UEI: 153561212)
Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 20876
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Parent Contract
Parent Award PIID: DAAB0703DB010
IDV Type: IDC
Timeline
Start Date: 2006-04-11
Current End Date: 2008-12-30
Potential End Date: 2008-12-30 00:00:00
Last Modified: 2015-05-20
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